Low latency
HFT systems are engineered to reduce the time between receiving market information, making a decision and submitting an electronic instruction.
Electronic Trading
When markets operate in milliseconds.
High frequency trading is a specialised form of algorithmic trading built around speed, automation and electronic market infrastructure. Understand how market data, latency and automated execution shape modern financial markets.
Market data · algorithms · latency · electronic execution
Marketdata / Electronic Market View
● LIVE
Symbol
Event
Bid
Ask
Latency
BHP
QUOTE
65.29
65.30
2.4ms
FMG
UPDATE
17.82
17.83
2.7ms
DRO
TRADE
1.840
1.845
2.1ms
Market message activity
● PROCESSING
Input
MARKET DATA
Logic
ALGORITHM
Engine
● ACTIVE
● ELECTRONIC TRADING
Illustrative interface
High Frequency Trading
What is high frequency trading?
High frequency trading, commonly called HFT, is a specialised category of algorithmic trading in which automated systems process market information and respond at extremely high speed. It is generally associated with professional trading firms and sophisticated market infrastructure.
Continuous market data
Automated systems can process large volumes of electronic market information as market conditions change.
Automated logic
Computer algorithms evaluate market conditions according to predefined quantitative rules.
Electronic execution
In genuine HFT environments, trading systems are designed around automated electronic interaction with markets.
High message volumes
Professional systems may analyse large numbers of market events and opportunities that would be impossible to process manually.
Automated risk controls
Fast systems also require rigorous technical and trading risk controls because errors can propagate rapidly.
How HFT Works
Data, decision and execution form a continuous electronic loop.
01
Market Data
Electronic information about prices, trades and market conditions enters the system.
02
Algorithm
Software evaluates the incoming information against predefined trading logic.
03
Risk Controls
Automated controls determine whether an intended action satisfies system and risk constraints.
04
Electronic Action
Professional systems can then interact electronically with the relevant market infrastructure.
HFT vs Retail Trading
High frequency trading is not simply fast day trading.
Retail traders can use algorithms, screeners and automated processes, but genuine high frequency trading generally involves a different level of infrastructure, connectivity, technology and operational complexity.
Professional HFT
01
Specialised infrastructure
Systems are engineered specifically around extremely
low-latency electronic trading.
02
Automated execution
Algorithms can make and execute decisions without
manual intervention for each individual trade.
03
High technical demands
Connectivity, software architecture, monitoring and
risk controls are central to the operation.
Active retail trading
01
Market screening
Traders can use software to rapidly identify securities
matching selected market conditions.
02
Technical analysis
Charts and indicators can help traders investigate
price, momentum and market activity.
03
Systematic processes
Retail traders can still use rules and automation
without operating a true HFT infrastructure.
Bring data-driven trading tools into your ASX workflow.
Marketdata gives Australian traders access to market screening, RSI analysis, charts, company information and systematic trading tools designed to make market research faster and more structured.
The high frequency trading interface above is illustrative and does not represent a claim that Marketdata provides exchange co-location, institutional HFT infrastructure or guaranteed execution latency. Marketdata provides market information, analytical and educational tools. Trading involves risk and nothing on this page constitutes personal financial advice.